Founder of 38 Studios, Curt Schilling, is being sued by Rhode Island Citizen’s Bank for $2.4 million after his company declared bankruptcy earlier this month.
The official suit was filed June 6 with Boston Superior Court. Citizen’s Bank is seeking the return of a $2 million letter of credit and a $350,000 credit card that Schilling allegedly personally guaranteed to pay off. Both Schilling and 38 Studios have refused to pay.
After the colossal collapse of 38 Studios, Schilling revealed that his total investments in the company are around $38 million with another $12 million tied up in guaranteed loans. This suit seems like the beginning of persistent financial turmoil for Schilling.
According to Gamastura, Citizen’s Bank is currently attempting to leverage the retail brokerage company Morgan Stanley Smith Barney to pull the funds out of Schilling’s personal bank accounts.
38 Studios officially declared for Chapter 7 Bankruptcy protection earlier this month resulting in liquidation of company assets, including their Project Copernicus MMO. This filing was after futile attempts to get financing from the state of Rhode Island or outside investors to continue operations.